Reserve Bank of Malawi produces and disseminates financial and economic data under provisions of the Reserve Bank of Malawi Act (1989) (Laws of Malawi Chapter 44:2).

Power to collect information: The principal objectives of the Bank shall be [among others]:

To collect economic data of financial and other sectors for research and policy purposes (RBM Act, 1989 Paragraph 4, subsection (i)

The Bank may for monetary policy and research purposes require banks, other financial institutions and companies to submit within a reasonable period such information and in such format as may be prescribed by the Bank (RBM Act, 1989 Paragraph 62)

The Bank shall take action and, if it deems necessary shall make proposals for appropriate action by other authority in order to - disseminate to the public information on capital market and on securities (Capital Markets Development Act Paragraph 5, Subsection (e))

RBM adopted a unified reporting system for monetary data. The Accounting Department prepares Central Bank Accounts which are shared on a weekly basis with the Research and Statistics department. Banks and Other financial institutions submit returns detailing financial and other statements regarding their business to the Banking Supervision and Supervision of Non-banks Departments which are then shared with the Research department. Arrangements are put in place to facilitate efficient and timely flow and exchange of data. Regular inter-departmental meetings are held to ensure that alignment with current conventions is adhered to.

At the Reserve Bank, access to individual data is restricted to staff who require information in the performance of their duties and passwords have been built into the software programs to prevent unauthorized access to individual data.

Notwithstanding section 50 [of the Banking Act 1989] the Reserve Bank may publish in whole or in part in such form and at such time as it may deem fit, any information or data furnished or collected under this Act provided that no information or data which might disclose the particulars of a bank or financial institution or customer of such bank or financial institution, shall be published unless the contents of such bank, financial institution or customer, as the case may be, has been obtained (Banking Act 1989, Paragraph 51).

Except when in performance of his duties, no director, officer or employee of the Bank shall disclose any information relating to the affairs of the Bank or any bank, financial institution, company or individual which he acquired in performance of his duties or the exercise of his functions under this Act (RBM Act, 1989 Paragraph 59, Subsection (1).

Notwithstanding any disciplinary action that may be taken, any person who contravenes the provisions of subsection (1) shall be guilty of an offence and liable to a fine of K5,000 or to imprisonment for two years." (RBM Act, 1989 Paragraph 59 Subsection (2)

Except when in the performance of his duties or the exercise of his functions, or when required to do so by any court or under any law, neither any inspector appointed under section 12 or 22 nor any person appointed adviser under section 31 (1) (d) nor any director, manager, officer or employee of the Reserve Bank, shall disclose any information relating to the business of any bank or financial institution which he has acquired in the performance of his duties or the exercise of his functions (Banking Act, 1989 Paragraph 50).

Under the unified data reporting system, data collection for monetary statistics compilation is strengthened by RBM,s Bank supervision and compliance and accuracy through on-site inspections. In the event of misreporting, a pecuniary penalty could be imposed on the producer. In terms of dissemination, existing reporting arrangements with the IMF serve as a compliance tool. Further, Research and Statistics department authorities’ performance is pegged to timely dissemination of accurate information to various stakeholders.

The current number of staff on the Banking Services Section is adequate to perform related duties with respect to compilation of monetary authorities’ accounts. Staff is generally recruited on a highly competitive basis. All section members are urged to attend training and short courses and almost half the number have attended the course on monetary and financial statistics. Computing as well as financial resources are generally adequate for the duties at hand.

Statistics compiled by Reserve Bank of Malawi are produced on an impartial basis. Professionalism is enforced beginning with the recruitment, induction as well as assignment processes. Ad hoc assignments encourage independent analysis. Further periodic technical assistance from both local and external experts and training ensure that statistics are compiled on an impartial basis.

Monetary statistics and exchange rates are compiled from both RBM and the commercial banks and the compilation is guided by internationally accepted guidelines. Dissemination is largely through both internet and hard copies of the statistics.

RBM undertakes to ensure that no erroneous interpretation and misuse of statistics in the press or media is entertained to avert any panic that could possibly ensue. In the event that a misinterpretation occurs, RBM prepares an appropriate reply to address the issues at stake.

All RBM staff are required to abide by Rules and Orders of the RBM, updated and circulated by the Human Resources and Institutional Development Department. All updates or revisions to the rules are shared or communicated through Administrative Notices or the website. A booklet detailing the same is deposited in the Library.

The analytical framework used by the Reserve Bank in compiling monetary authorities’ accounts is broadly consistent with the guidelines as outlined in the Monetary and Financial Statistics Manual (MFSM) 2000. Full adoption of the nomenclature is yet to be achieved in the accounts.

The monetary authorities’ accounts cover balance sheet items of the Reserve Bank of Malawi and central bank functions done bythe Ministry of Finance (holdings of foreign exchange).The reserve money aggregate (together with the other broader aggregates: net foreign assets and net domestic credit) are compiled and disseminated on monthly basis. The detailed monetary authorities’ accounts (which present reserve money figures) are disseminated together with a complete monetary survey in the RBM Financial and Economic Review. The central bank aggregates, being balance sheet items are in stock positions. The aggregates are compiled on monthly basis from balance sheets of the Reserve Bank of Malawi (adjusted for foreign assets held by government). The data are presented in millions of Malawi kwacha unless otherwise indicated.

Sectorization scheme adopted appropriately distinguishes between resident and non-resident sectors. The resident sector is subdivided into central government and public nonfinancial corporations. Currently, separate identification of local government as stipulated by the Manual lacking due to structure of operations. Delineation between money issuers and money holders broadly consistent with the Manual. Classification of financial instruments used for monetary statistics is in broad conformity with the guidelines.

The general recommendation of the MFSM is that the valuation of financial assets and liabilities should be carried out on the basis of market prices or market price equivalents. The exception to this rule is that loans should be valued at their book values without adjustment for expected losses. These principals are broadly followed in the Reserve Bank monetary statistics. Thus monetary gold is valued at market prices, loans are valued at current book value without adjustment for expected loss, conversion of foreign currency denominated assets and liabilities is carried at prevailing market exchange rates.

In line with the general principal of the MFSM, assets and liabilities of the Reserve Bank are collected and compiled on a gross basis. Claims on a particular transaction are thus not netted against liabilities to other transactions

The source data for compiling the central bank data are the balance sheet data prepared by the Reserve Bank Accounting department on a daily basis. The balance sheets are generated by a computerized ledger system based on complete recording. All source data are kept under periodic reviews to ensure data collection remains comprehensive.

The Accounting ledger of Reserve Bank and subsequent preparation of monetary authorities’ accounts are presented timely to allow for compilation. RBM Balance sheer compiled daily with a one working day lag.

Sound statistical techniques are employed. Compilation procedures are designed to minimize processing errors such as coding, editing and tabulation. Computer processes are reviewed to ensure quality sustenance.

Monetary Authorities’ Accounts can be revised. Such revisions may occur on account of post-audit normalizations but are infrequent and tend to be of smaller magnitude. As such no revision studies are undertaken.

Partial data on monetary authorities’ data, including reserve money components, are disseminated within 60 days on the Banks’ website. A detailed coverage of monetary authorities accounts is disseminated four-six months after reference date in the RBM Financial and Economic Review.

Statistics are generally consistent. The RBM Financial and Economic Review is produced with enough detail of the monetary authorities’ accounts to provide for consistency checks within and across sector.

Data on components of reserve (base) moneyare disseminated through publication in the Bank’s Financial and Economic Reviews which carry detailed accounts of the central banks’ balance sheet items. The reserve money components are also published on the Banks’ website: www.rbm.mw.Additionally, reserve money figures are made available to the public through publications of minutes of the monthly Monetary Policy Committee meetings in the local newspapers.

The Reserve Bank releases data through a variety of publications Monthly Economic Review, Quarterly Financial and Economic Review, and the Annual Financial and Economic Review The publications are also available on the website www.rbm.mw

All data produced by the bank are disseminated through the Bank's publications (including website). Data on weekly exchange rates are e-mailed to those that have subscribed to the e-mail list and mailed to those that have subscribed to the bank's postal mailing list.

Everyone can subscribe to the e-mail list by writing to or faxing the Director of Research and Statistics, Reserve Bank of Malawi.

All Reserve Bank publications contains some notes and/or footnotes providing users some information about the published data. Currently the Dissemination Standards Bulletin Board is not yet hyperlinked to the website.

In all RBM publications, the Director, Research and Statistics is identified as a contact person and the email address is indicated research@rbm.mw. All requests for clarification or use of the data are thus channeled to the Research and Statistics department which prepares an appropriate response. Contact persons are also highlighted in this document.

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